Incentives may be given for coal gasification: Minister for coal and mines G Kishan Reddy

New Delhi: The government is considering increasing financial support and other incentives for coal gasification, minister for coal and mines G Kishan Reddy said Wednesday.

Coal gasification is an immediate substitute for some petroleum products and imported ammonia, Reddy said on the sidelines of an event to sign a land lease pact for Bharat Coal Gasification and Chemicals' upcoming project in Odisha.

Describing coal gasification as a key transformative technology, Reddy said it converts coal into syngas, which can be further used to produce cleaner fuels, chemicals and fertilisers. The coal ministry will soon hold a meeting with investors and technology providers for investment opportunities in the sector, Reddy said. There will also be a workshop on various technologies for such projects. "Incentives may be given for the companies wanting to invest in India for which discussions are going on; we are speaking to the finance ministry," he said.


India's coal reserves are estimated to be nearly 400 billion tonnes, among the largest globally.

The National Coal Gasification Mission has a target of 100 million tonnes of gasification by 2030.